The sales for the Year 2020-21 are $1,000,000 which includes receivables of $177,000. The owner is factoring the receivables to raise funds for the growth of the business. As per the conditions, there is 9.2% discount and the additional 2% charge imposed by the factor when the average collection period exceeds 30 days for each expected ten days average collection period. What is the dollar amount the owner will receive when the average collection period is 29 days?
The sales for the Year 2020-21 are $1,000,000 which includes receivables of $177,000. The owner is factoring the receivables to raise funds for the growth of the business. As per the conditions, there is 9.2% discount and the additional 2% charge imposed by the factor when the average collection period exceeds 30 days for each expected ten days average collection period. What is the dollar amount the owner will receive when the average collection period is 29 days?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The sales for the Year 2020-21 are $1,000,000 which includes receivables of $177,000. The owner is factoring the receivables to raise funds for the growth of the business. As per the conditions, there is 9.2% discount and the additional 2% charge imposed by the factor when the average collection period exceeds 30 days for each expected ten days average collection period. What is the dollar amount the owner will receive when the average collection period is 29 days?
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